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  1. Azalea Seafood 5 Forces And Swott Analysis

    Azalea Seafood 5 Forces and SWOtT analysis. 1. Rivalry among competing sellers
    (Moderate) • Customers switching costs are low • Demand ...

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Azalea Seafood 5 Forces And Swott Analysis

Submitted by whomikejones on April 1, 2007

Category: Business
Words: 337 | Pages: 2
Views: 197
Popularity Rank: 52,300
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1. Rivalry among competing sellers (Moderate)

• Customers switching costs are low
• Demand for products is starting to grow
• Compete aggressively for favorable product placement in supermarkets


2. Competitive Force of Potential Entry (Moderate-Strong)

• Economies of scale are fairly low to initially enter the market as a value-added seafood producer
• Customer loyalty and brand preference is high. If first-time customers are pleased with their experience, then they are likely to be repeat customers.
• The industry is beginning to grow
• Many unfilled niches to pursue


3. Competitive pressures from Substitute Products (Moderate)

• Attractively priced alternative products are rapidly available
• Very low competition for gumbo
• In a sense Azalea has to compete with every other product in the store such as steak, fish, chicken, etc.
• Customers have low switching costs


4. Bargaining Power of Suppliers (High)

• Considerable latitude in the choice of suppliers since the purchase of such items as raw seafood, raw vegetables, and packaging are commodity-like in nature and are available from multiple suppliers


5. Bargaining Power of Buyers (High)

• Buyers have higher leverage since they make their purchases in large quantities
• Buyer’s switching costs are low
• Buyer’s have bargaining power due to the difficulty of value-added seafood products to sell directly to individual customers




SWOT Analysis


Strengths

• Capable top management
• Great-tasting award-winning recipes
• Azalea’s representation in Wal-Mart Supercenters and other regional supermarkets – about 1,100 retail outlets in the southeastern U.S.


Weaknesses

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